US Consumer Confidence Hits Lowest Level Since 2014
The Conference Board reports a sharp drop in US consumer confidence despite rising government spending and personal income data.
Consumer confidence in the United States fell 6.7 points in September to 81.9, marking the lowest level since 2014 according to the Conference Board. This decline in sentiment contrasts with government data showing that personal income rose 0.2% and spending increased 0.9% in August, as households lowered their saving rate to 4.1%.
Kari Butcher of Burson cautioned business leaders against using this polling data as a reliable forecast for consumer behavior. She described a category error occurring when stated preferences are mistaken for predicted actions, asking, "What decision does this give us enough evidence to make?"
The economic anxiety comes as 84% of registered voters identify the economy as a top issue ahead of the midterm elections, according to the Pew Research Center. Butcher argued that while polls can track political leads, they cannot accurately predict how investors, employees, or customers will respond to the political environment.
